Richard Duncan, Chief Economist at Blackhorse Asset Management, discusses how over the years, capitalism has evolved into creditism; that is, growth is no longer driven by saving and investment but instead by credit creation and consumption. This shift has resulted in trade imbalances, which have destabilized the global economy by creating a worldwide credit bubble. Many governments are responding by lowering interest rates and inflating asset prices, hoping to prevent a depression. To be successful, investors will have to correctly anticipate these government responses.